The Free State Rugby Union has begun a retrenchment process as it continues efforts to stabilise its finances.
According to a letter dated 18 March, the union has issued formal notice in terms of Section 189(3) of the Labour Relations Act, proposing a consultative meeting with staff on 27 March.
News24 reports that up to 12 employees could be affected if the process goes ahead, although the Cheetahs’ 41 contracted players are not included.
The move comes after reports in February that a consortium of more than 10 Free State businessmen had stepped in to pull the union back from the brink of financial collapse.
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Before that intervention, the union was under severe financial pressure, with debts running into millions and, at one stage, forced to borrow money simply to meet salary commitments.
In the letter, the union said it has been operating at a loss for at least five years despite implementing various cost-cutting measures, which have not been sufficient to turn its fortunes around.
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The document outlines several reasons for the proposed retrenchments, describing them as a last resort in an effort to ensure the organisation’s long-term sustainability.
It also notes that certain roles within the union have become redundant, while in other cases duties could be absorbed by remaining staff as part of a streamlined structure.
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